Wednesday, February 11, 2009

2009 General Assembly Transportation Bills

Comment by HRP Guest Blogger Matt Simons, a Masters in Public Administration graduate student at ODU and a student of urban planning.

What we have is an elected-MPO (Metropolitan Planning Organization) with no taxable authority to implement any of their own recommendations. So, unlike well functioning cities like Portland, Oregon whose MPO has the ability to appropriate projects via a regional gas tax or toll control, instead we have two separate hands trying to deliver goods but from two separate bodies.

Because Virginia is what's known as a "Dillon-rule state," of which only 6 states remain, the cities nor the region are able to implement specific taxes which apply only to the region. So, we must allocate money from each municipality’s general fund and then beg Richmond for state funds or Congress for federal funds.

But, where in the general fund do we specifically take the money? Every amount we take will come with an opportunity cost, i.e. taking money from schools. The 18 cent per gallon gas tax increase would, of course, be met with initial complaints, but, in comparison to neighboring states, our gas tax is relatively low. But, most importantly, city drivers demand more out of the road than their rural counterparts. The future of the local economy is dependent on our areas’ transportation infrastructure.

Whether it be Light Rail, a Third Crossing, a new Jordan Bridge, a Midtown tunnel expansion, or, hopefully, all of the above. We need to be able to fund these projects. The alternative, which we are now realizing, is an economic truth; from our inability to appropriate funds, we will begin to see private infrastructure built with the direct intention of turning a profit.

We will be forced to pay a toll if we need to travel over a bridge or through a tunnel. Although this is a pretty good “plan B”, “plan A” would involve no tolls at all and our economic future could thrive uninhibited. But, this comes now with a hefty gas tax, which will only get stronger as we continue to neglect the growing need.

Anyone who dares to complain about this tax has no right to complain about traffic congestion. Period.


Matt shared his comment to this January 23rd article by Dave Forster of The Virginian-Pilot:

RICHMOND-- Two Hampton Roads delegates plan to unveil tax proposals today that they say would raise $1.75 billion to help meet a budget shortfall without cutting so deeply into public services.

Del. Kenny Alexander, D-Norfolk, said he and Del. Kenneth Melvin, D-Portsmouth, plan to introduce bills that would:

* Raise $1 billion annually for transportation projects by adding 18 cents to the gas tax.
* Raise a projected $750 million by increasing the state income tax on people who earn more than $300,000 to 6.5 percent - an increase from the current 5.75 percent rate.

The bills will likely be dismissed in the Republican-controlled House, where the leadership has opposed tax increases to fund transportation.

Senate Majority Leader Richard Saslaw, D-Fairfax, said he had no problem with the proposals but referred to them as "Don Quixote" -like in this General Assembly.

"It ain't going to happen," Saslaw said. "I proposed a penny-a-gallon for five years, and it went nowhere."

Alexander hopes to build support from the Legislative Black Caucus, which could discuss the ideas today at a scheduled news conference. A consensus of the members at a caucus meeting Thursday was an endorsement of the proposals, Alexander said. Several members were away at other committee meetings.

"The caucus is trying to find solutions," Alexander said.

The state is facing a $2.9 billion revenue shortfall in next year's budget.

Gov. Timothy M. Kaine has proposed cuts in funding for public education, colleges and health care to balance the budget.

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